Index

B

Banker, 135, 137

Banking

business of, 135

deposit, 140

fractional reserve, 140, 148, 171

free, 171–72

loan, 140

School, 153, 157, 160, 175, 228–29

Banknote, 26, 85, 136, 139, 145

Bills of exchange, 139, 151

Bimetallism, 38

Böhm-Bawerk, Eugen von, 18, 62, 81, 177, 179–80

Business cycle, 173, 177–78, 184, 190, 220

C

Cable rate, 86

Capital

consumption, 106, 110

private, 44, 45

social, 44, 45

Capitalist, 135, 137

Circulation credit, 135, 138, 139, 140, 143

Circulation credit theory of the trade cycle. SeeBusiness cycle

Classical economists, 11, 13, 18, 20

Clearing systems, 85, 156–57

Commodity credit, 135, 138, 140

Commodity money, 23, 26–27, 39

Cost of living, 86, 87

Credit, 146, 151, 159

Credit money, 23, 27, 29–30, 36, 38, 39, 163, 169–70, 206

Credit policy, 183–94

Credit transactions, 105–06, 135, 137–38

Currency School, 175, 185, 191–92, 194, 228–29

Currency speculation, 128–29, 132

D

Deflation, 115–16, 119, 120, 189, 217–18

Deflationism, 115–16, 119

Diminishing marginal utility, law of, 11, 15

Direct exchange

definition, 3, 5

price determination in, 81

role in theory of money, 67, 69, 227, 232

Division of labor, 5

E

Étatism, 125, 127, 132

F

Fiat money, 23, 27, 36, 38, 84, 163, 171, 206

Fiduciary media, 68, 73, 135, 136, 138, 139, 140, 143, 145–51, 153–63, 165–74, 184, 215–16, 220

Fisher, Irving, 15, 18, 189–90

Foreign exchange rate, 86, 92, 121, 130, 132, 207–08, 211

Forward contract, 109

Futures contract, 109

G

Gold standard, 26, 97, 117, 120, 121, 183–84, 188–89, 197–98, 200, 203, 205–11, 213–23

Golden rule (of maturity matching), 137

Goods

consumption, 43, 51, 85, 89, 175

free, 15

objective exchange value of, 60–61

present versus future, 105, 135, 137–38, 179

production, 43, 51, 85, 89, 175

subjective exchange value of, 60–61

Gresham’s Law, 38

H

Hoards, 75–76

Horwitz, Steve, 171–72

I

Index numbers, 99–103, 189–90

Indirect exchange

definition, 3, 6

emergence of, 3–4, 5–7

inevitability, 54

relation to fiduciary media, 139

relation to theory of money, 230, 232

Inflation, 115–16, 118–19, 120, 124, 184, 189, 198, 203, 215, 217–18

Inflationism, 115–16, 118–19, 120, 124, 125–26, 127–29

Interest

money rate of, 175, 176–78, 182

natural rate of, 154, 157, 160, 176–78, 182

source of, 175, 179

J

Jevons, William Stanley, 20

L

Legal tender legislation, 26, 29

Liquidity, 27, 30, 165, 168–69, 194

M

Marginal revolution, 20

Medium of exchange, 5–6, 43, 80

Menger, Carl, 8, 12, 20, 39, 59, 62, 68, 70, 71, 81, 179

Monetary policy, 115–22

Money

broader sense, in the, 138, 146, 153, 155–57, 158

certificates, 68, 73

commodity. SeeCommodity money

cranks, 50, 52

credit. SeeCredit money

definition, 3, 5

fiat. SeeFiat money

function of, 3–4, 5

index of prices, 17, 149

measure of market exchange value, 16

narrower sense, in the, 26, 145, 153, 155–57, 165, 167–68, 169–70, 186

objective exchange value of.

SeeMoney, purchasing power of

origin of, 3–4, 5–7, 67, 71

purchasing power of, 23, 25, 28, 37, 57, 59–60, 67–68, 69, 76–77, 79–80, 86, 99–101, 109–10, 115–16, 155–56, 168, 190

quantity theory of. SeeQuantity theory of money

secondary functions of, 4, 7, 35, 37

socialism and, 49, 51

sound, 197–203, 213–23

state’s influence on, 38

state theory of, 37, 38, 39, 227–28, 232

substitute, 23, 25–26, 29–30, 36, 39, 167, 169–70

supply and demand, 72, 73–78, 84, 155–57, 176

P

Paper standard, 26

Parallel standard, 91

Peel’s Act, 157, 183, 185–86, 194

Prices

caused by subjective preferences, 14, 57–58, 59

controls on, 28, 125, 127–28, 130, 132, 207–08

Purchasing power parity, 92, 97, 207

Q

Quantity theory of money, 68, 70, 72, 73–77

R

Regression theorem, 81–82

Ricardo, David, 20

Rothbard, Murray, 140, 171–72

S

Saving, relation to subsistence

fund, 180

Scale of values, 11, 14, 21, 82

Schumpeter, Joseph, 228, 230

Seigniorage, 145

Selgin, George, 171–72

Smith, Adam, 20, 163

Solvency, 165, 168–69, 194

T

Token coins, 26, 29, 80, 145

Trade balance 92–93, 94–95, 119, 121, 125–26, 128

Trade cycle. See Business cycle

U

Unemployment, connection with inflation, 198

Utility, 11, 15, 18–19

V

Value

cost theory of, 18

definition, 11, 13

labor theory of, 18

measurement of, 21

objective theory of, 11, 13, 18, 20

objective use, 62, 65

subjective theory of, 11, 13–14, 18, 20, 57–58, 59–60, 61, 62, 65, 67–68

subjective use, 60–61, 62, 65, 84, 85

total, 15

W

Walras, Léon, 20

Wicksell, Knut, 161, 177, 182

Wieser, Friedrich von, 18, 21, 62, 78, 89, 100